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Ferdinand has a coefficient of risk aversion of 1.3. He is thinking of investing in a portfolio that is 30% Asset 1, and the remainder
Ferdinand has a coefficient of risk aversion of 1.3. He is thinking of investing in a portfolio that is 30% Asset 1, and the remainder invested in Asset 2. Asset 1's returns have a mean of 9.7% and a standard deviation of 6.9%. Asset 2's returns have a mean of 6.1% and a standard deviation of 9.0%. The coefficient of correlation between these two assets is 0.69. What is Ferdinand's utility from this portfolio? Please enter your answer as a decimal to 4 places.
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